KPS Capital Partners announced that its portfolio company, Waupaca Foundry, completed its second successful recapitalization. The proceeds of the recapitalization, funded by a $125 million upsizing of the company’s term loan, were used to fund a $125 million cash distribution to stockholders.
Following the recapitalization, Waupaca remains conservatively capitalized and has the continued support of KPS, its majority shareholder, to pursue continuous improvement and growth initiatives.
KPS acquired ThyssenKrupp Waupaca, which was renamed Waupaca Foundry, from ThyssenKrupp Budd Company, through a newly formed, wholly owned affiliate, in June 2012.
In February 2013, Waupaca completed its first recapitalization, the proceeds of which were used to fund a $200 million cash distribution to stockholders. As a result of the two recapitalizations, Waupaca has distributed $325 million of cash to its stockholders since its creation.
Financing for the transaction was provided by a syndicate of banks and institutional investors with GE Capital Markets acting as lead arranger.
Waupaca, the largest iron foundry company in the world, produces gray and ductile iron castings using state-of-the-art technology.
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